In Every Economic System, Choices Must Be Made Because Resources

question 148

Multiple Choice

In every economic system, choices must be made because resources

• A) are unlimited, but human desires and wants are limited.
• B) are limited, but human desires and wants are unlimited.
• C) are unlimited, and so are human desires and wants.
• D) are limited, and so are human desires and wants.

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Definitions:

EOQ Model

Economic Order Quantity model, a formula used in inventory management to determine the optimal order size that minimizes total inventory costs.

Dependent Demand

The demand for components or raw materials that is directly tied to the demand for the final product they contribute to creating.

Production Order Quantity (POQ) Model

An inventory management model that determines the most economical quantity of a product to order or produce, balancing setup costs with holding costs.

EOQ Problem

Economic Order Quantity (EOQ) refers to the ideal order quantity a company should purchase to minimize inventory costs including holding, shortage, and order costs.